VentureCrowd, Australia’s original and most successful equity-based crowdfunding platform, has closed a second, oversubscribed funding round in partnership with end-to-end residential property developer, Clearstate, for a residential development in Sydney’s south west.
Hot on the heels of the companies’ inaugural Riverstone development deal, which raised close to $1 million in under four hours, the Austral investment has given more than 50 investors 49% equity with a targeted return of 84% on a total investment of $1.7 million.
The 2.4-hectare development site in Austral, west of Sydney, will be sub-divided into 44 residential lots. Clearstate is currently developing 8 subdivision projects across the Western Sydney growth corridors and North West Melbourne, offering residential land for home owner occupiers and investors. Land parcels range from 260m2 to 1,300m2, averaging 450m2 per lot.
“We are pleased to once again be a part of a unique investment opportunity with VentureCrowd,” said Lachlan Cameron, Commercial Director of Clearstate.
“Working with such a specialised platform provides access to a broad range of interested parties and allows us to put our development projects in the hands of the people who really want to invest in them. Together with VentureCrowd, Clearstate is reaching a new community proactively seeking investment in property for development.”
With Clearstate involved in all phases of the development it ensures that each project is carefully selected, planned and executed, that costs are controlled and the quality of the product is delivered for customers, while allowing sustainable returns for investors.
The deal is one of VentureCrowd’s most popular yet, with more than 50 investors taking part. They include former Credit Suisse advisor Mitchell Hopwood, who invested through his self-managed superannuation portfolio as an alternative to a listed property fund.
“The Austral opportunity provided a relatively high, short-term return in a bite-size, easily understandable transaction that is fairly derisked from an investment perspective,” Mr Hopwood said.
“By investing through VentureCrowd, I am given direct exposure to an investment opportunity that I wouldn’t have had access to otherwise, helping me build out a diversified superannuation portfolio.”
The innovative funding method, facilitated through the VentureCrowd platform, is giving eligible investors access to unique opportunities, while developers such as Clearstate can raise equity through a new form of alternative financing to facilitate the Australian dream of homeownership.
“We anticipated demand for the Austral project following the success of Riverstone, but we were astounded by just how quickly this latest round was oversubscribed,” said Luke Fay, VentureCrowd GM of Equity & Credit.
“Investors clearly have a robust appetite for alternative opportunities, whether it’s start-ups, corporate bonds or in this case, Australian property. We’re really looking forward to keeping the momentum going with similar investment opportunities in the coming months.”